A stock just paid a dividend of $2.00. Due to the introduction of a proprietary product, the dividend growth rate is expected to be 30 percent for the next two years, 15 percent for years 3 and 4, and then return to a constant growth rate assumption of 4 percent, thereafter. The required return on the stock is 18 percent.
Does anyone know any of the following:
(a) What is the current expected price of stock
(b) What is the expected price of the stock at Year 6
2007-03-25
01:52:42
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1 answers
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asked by
Munch_101
1